GBP/USD finds support at 5-DMA, re-takes 1.3200

Aggressive selling seen in GBP/USD stalled at 5-DMA support of 1.3158, offering some respite to the GBP bulls, which sent the rate back towards 1.3180 region.

GBP/USD capped by cross-driven demand

Currently, GBP/USD drops -0.32% to 1.3180, recovering quickly from a drop to daily lows struck at 1.3160. The GBP/USD pair attempts a minor-recovery from the 5-DMA support amid broad based US dollar softness, although any recovery is likely to be short-lived in response to increasing demand for the EUR/GBP cross, which continues to exert downward pressure on the GBP.

Moreover, unstable European equities combined with weaker oil prices, further exacerbate the pain in the cable. Meanwhile, the major continues to track the broad market sentiment amid a lack of economic data from the UK docket, while it awaits the US unemployment claims data due later in the NA session for fresh impetus.

GBP/USD Levels to consider                           

The pair has an immediate resistance at 1.3249 (daily top), above which 1.3300 (round figure) would be tested. On the flip side, support is seen at 1.3150 (psychological levels) below that at 1.3133 (20-DMA).